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130 for trial over failed contracts
Yomi Odunuga, Abuja
A litmus test of President Olusegun Obasanjo�s resolve to bring to book those responsible for the rotten state of Nigeria�s infrastructure could be under way.
Already, indications have emerged that the government may soon begin the prosecution of some highly placed persons who abandoned Federal Government projects after collecting billions of naira in mobilisation fees, resulting in the failure of such contracts between 1976 and 1998.
The Federal Executive Council on Wednesday directed that at least 130 of the contractors indicted by a White Paper on the failed projects should refund a total of N7,086,216,527 to the Federal Government. Besides, the FEC also asked the Attorney-General of the Federation to liaise with the Chief Justice of Nigeria to look into the possibility of establishing a Special High Court that would speedily handle cases of failed contracts and related financial crimes.
A committee headed by the Minister of Works, Senator Adeseye Ogunlewe, had been mandated to examine the draft White Paper, which was first published in April 2003.
Notable companies and Nigerians indicted by the draft White Paper included, former Minister of National Planning, Chief Silas Daniyan; Messrs Cappa & D�Alberto; Bulletin Construction Company; Special Adviser to the President on Inter-Party Affairs, Chief Rochas Okorocha; National Chairman of the United Nigeria Peoples Party, Alhaji Saleh Jambo, and former Minister of Internal Affairs, Gen. Muhammadu Magoro.
Giving a breakdown of the failed projects to journalists at the Aso Rock Presidential Villa, Ogunlewe said four ministries were affected in the first quarterly report which was submitted to the Federal Executive Council for ratification. The ministries include Works, Science and Technology, Defence and Education. While defaulting contractors in the Ministry of Works would refund over N5 billion, other contractors spread over the three ministries would refund about N2 billion.
Among the companies affected by the order are Dumez Nigeria Plc, F.G.N Ohiye and Sons Limited, International Niger Building Construction Company Limited and Himus Engineering Company Limited.
Others are P.W Nigeria Limited, il Construction Company Limited, 2 Way Communication Limited, Poat Engineering Development Company Limited, S. O. and Company Limited and Royamek Nigeria Limited.
A comprehensive report, made available to newsmen, showed that contractors in Works would pay N1,734,251,608 in local currency; $333,517,57 and French Francs 153,481,179 in foreign currencies. Those in Science and Technology would pay N1321500, Defence N2372973 and Education N792357373.
A firm belonging to the Special Adviser to the President on Inter-party Affairs, Chief Rochas Okorocha, was still under the searchlight of the probe panel. The firm, Urachi Enterprises Nigeria Limited, was being probed in respect of a contract for the procurement of motorcycles for the Ministry of Police Affairs.
Ogunlewe, who was accompanied to the briefing on the outcome of the Federal Executive Council meeting by the Minister of Information and National Orientation, Chief Chukwuemeka Chikelu, and his counterpart in Special Duties, Mr. Frank Nweke (Jnr.), said the committee carried out an extensive review of the cases before it and made appropriate recommendations.
�You will recall that the council considered the report of the committee on the failed and non-performing contracts between 1976 and 1998 and the council thereafter established a committee to implement that white paper. We have done an extensive review of the white paper. We have invited contractors, we have now reported to the council because we are expected to report every six months.
�This is the first report and we have reviewed from the Ministry of Works, 65 contracts, Ministry of Science and Technology 6, Ministry of Defence 11, Ministry of Education 49. In all almost all the contractors have refused to pay back. The council has now directed the Attorney- General to look at the possibility of designating some courts to try the contractors because it�s a lot of money. This administration is committed to retrieving the money,� the minister said.
In his contribution, Chikelu explained that the government was determined to tackle the problems of abandoned projects especially contractors that collected mobilization money and refused to execute the projects.
�Whatever is in dispute, the important thing is that the Federal Government is making a clear statement that it would not be business as usual. If you have a contract to execute for the Federal Government for which you have been paid, you are expected to deliver. And if you don�t deliver, you go through the judicial process,� he said.
Speaking on the special courts, the minister said, �Let me make a further clarification, what the FEC has requested the Attorney-General to do, is that the Chief Justice of Nigeria or the Chief Judges of various Federal High Courts be requested to designate a court within their own judicial circuit to handle these cases of failed contracts. We are not talking of establishing new courts outside of the existing judicial system, but requesting certain courts to handle this matter - so that they can be expeditiously discharged.
�In our discussion (at council) one matter that came up was that taking these people to court would take a very long time because of the pace of the judicial process. So we felt that one option was to have a court that could deal with matters like this - not just failed contracts; but other such financial matters. We are going to get a report from the Attorney-General as to the feasibility of that. The important thing is that we must recover for the Nigerian treasury monies that are illegally in the hands of contractors who have abandoned their projects and that�s all we are trying to do.�
Also on Wednesday, the Minister of Special Duties, Mr. Frank Nweke, disclosed that the Federal Executive Council approved the awards of contracts worth N190 million to tackle ecological problems in Osun and Oyo states.
Nweke, while briefing newsmen on the outcome of FEC meeting presided over by Vice-President Atiku Abubakar, said the approval was given to further demonstrate government�s commitment to come to the aid of states affected by ecological problems.
Giving a breakdown of the projects, the minister disclosed that council approved contracts for the construction of Apomu flood and erosion control infrastructure in Osun State at a total sum of N149 million and another one for the construction of the Ogbere Awotunde flood erosion control in Ibadan, Oyo State at a total sum of N38 million.
The projects, which will be handled by local firms, have a completion period of 12 months.
The minister said, �The Federal Government has, in furtherance of its commitment to come to the aid of states and communities who are facing one ecological problem or the other, approved the award of two ecological projects. As usual, these projects went through due process certification prior to presentation to the council. It is expected that these projects will be completed within 12 months period.�
The Punch, Thursday July 08, 2004
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